NVIDIA surpasses F1Q25 revenue forecast by $1.35B; Argus raises stock PT

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NVIDIA surpasses F1Q25 revenue forecast by $1.35B; Argus raises stock PT

On Thursday, Argus increased its price target for NVIDIA (NASDAQ: NVDA ) shares to $1,100 from the previous $950, while maintaining a Buy rating on the stock.

The revision follows NVIDIA's fiscal first quarter 2025 performance, which significantly surpassed Wall Street's aggressive consensus estimates. NVIDIA's revenue for the quarter exceeded expectations by approximately $1.35 billion.

The company's financial results showed a remarkable increase, with revenue and non-GAAP EPS rising by triple-digit percentages. This growth is largely attributed to NVIDIA's expanding presence in the artificial intelligence (AI) sector. The fiscal first quarter of 2025 data center revenue stood at $22.6 billion, a surge of over 400% compared to the $4.3 billion reported in the same period the previous year.

Management at NVIDIA has guided for the fiscal second quarter of 2025, projecting a midpoint revenue of $28 billion. This figure is around $1 billion higher than the pre-reporting consensus estimate. The upward trajectory of NVIDIA's business is bolstered by the company's recent showcase at the GTC 2024 event, where it unveiled several new and updated products, further solidifying its position within the AI ecosystem.

In anticipation of continued growth in fiscal year 2025, NVIDIA is also preparing for a 10-for-1 stock split scheduled for June.

The company is expected to extend its growth beyond the data center and AI markets, with advancements in its other end markets including gaming, professional visualization, and automotive, which are all forecasted to accelerate.

InvestingPro Insights

Following the impressive fiscal first quarter 2025 results from NVIDIA (NASDAQ:NVDA), investors are keenly observing the company's valuation and growth prospects. With a market capitalization of $2.34 trillion USD, NVIDIA is a behemoth in its field. The company's substantial revenue growth, which reached 125.85% over the last twelve months as of Q4 2024, underscores its expanding influence in the AI sector and beyond.

InvestingPro data highlights NVIDIA's robust financial health, with a gross profit margin of 72.72% and an operating income margin of 54.12%, reflecting efficient management and strong profitability. Moreover, the company's price performance has been stellar, with a 1-year price total return of 209.5% and trading near its 52-week high at 97.48% of the peak price.

InvestingPro Tips indicate that NVIDIA is trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock may be undervalued given its future earnings potential. Additionally, NVIDIA's consistent dividend payments over the past 13 years demonstrate a commitment to returning value to shareholders. For those looking to delve deeper into NVIDIA's investment profile, there are over 20 additional InvestingPro Tips available, offering a comprehensive analysis of the stock's performance and potential. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

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